Bank of Korea
January 14, 2016
For a seventh straight monthly meeting, officials at South Korea’s central left the base rate at 1.5%. It was cut to that level in June 2015 and previously reduced by 25 bps in May 2013, August 2014, October 2014 and March 2015. A released statement projects a continuing domestic demand-led recovery but expresses disappointment about lackluster business sentiment and declining exports and cautions that it attaches high uncertainty surrounding the growth projection “in view of external economic conditions.” Also, “the Board forecasts that consumer price inflation will fall considerably short of the 2% inflation target for the time being, owing mainly to the disappearance of the effect from the cigarette price hike and to the recent further declines in international oil prices.”
Copyright 2016, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank of Korea
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